EXPLANATORY STATEMENT
Tariff Concessions Revocation Instrument 95/2006
Customs Act 1901
Background
Part XVA of the Customs Act 1901 (the Act) sets out a scheme under which Tariff Concession Orders (TCOs) may be made and revoked by the Chief Executive Officer of Customs (the CEO). A lower rate of customs duty applies to goods that are the subject of a TCO.
Under sections 269C and 269P of the Act, a TCO will be made if the application for the TCO meets the core criteria, that is, on the day on which the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business.
Section 269SB of the Act provides, in part, that a person claiming to be a producer in Australia of substitutable goods in relation to the goods covered by a TCO may request the CEO to revoke the TCO.
Under subsection 269SC(1) of the Act, the CEO must decide whether of not her or she is satisfied:
− that, on the day of lodgement of the request, the person requesting the revocation of the TCO is a producer in Australia of goods that are substitutable goods in relation to the goods the subject of the TCO;
− that, if the TCO were not in force on that day but that day were the day on which the application for that TCO was lodged, the CEO would not have made the TCO.
If the CEO is satisfied of those matters but is also satisfied that a narrower TCO could have been made on the day the request to revoke was lodged, the TCO must revoke the TCO and make, in its place, such a narrower TCO (subsection 269SC(4) refers).
Visy Industries Australia Pty Ltd requested that the CEO revoke TCO 0314952 which covers kraft paperboard.
Instrument
Tariff Concession Instrument No 95/2006 was made on 1 November 2006. It revokes TCO 0314952 and remakes a narrower TCO 0614830 covering kraft paperboard as the CEO is satisfied that he or she would not have made the old TCO but could have made the narrower TCO.
Consultation
Subsection 269SC(1A) of the Act provides that as soon as practicable after receiving a request for revocation of a TCO, the CEO must publish in a Gazette a notice which includes a statement that a request has been lodged and the full particulars of the TCO to which the request relates.
Commencement
Subsection 269SC(6) provides that an order revoking a TCO comes into force on the day on which the request to revoke the TCO was lodged.
Subsection 269SC(7) provides that if a narrower TCO is made in place of another TCO, that narrower TCO comes into force from the date of effect of the revocation of the other TCO.
Subsection 239SD(8) provides that subsections 269SC(6) and 269SC(7) have effect despite section 12 of the Legislative Instruments Act 2003. Section 12 prohibits the making of certain retrospective legislative instruments.
Tariff Concession Instrument No.95/2006 revoked 0314952 and made the narrower TCO No. 0614830 on 1 November 2006.
Overview
The Customs Act 1901, enacted by the Australian Parliament, establishes a framework under which the Chief Executive Officer of Customs can create and revoke Tariff Concession Orders (TCOs). The problem this Act addresses is the need to balance tariff concessions for imported goods with the protection of domestic industries. Specifically, it allows for the reduction of customs duty on imported goods when no substitutable goods are produced in Australia, but also provides a mechanism for revoking such concessions when domestic production commences. The Tariff Concessions Revocation Instrument 95/2006, made under the authority of the Customs Act 1901, revokes TCO 0314952 and replaces it with a narrower TCO 0614830 for kraft paperboard, following a request by Visy Industries Australia Pty Ltd. The revocation and subsequent narrower concession were enacted to ensure that tariff concessions remain appropriate and do not unfairly disadvantage domestic producers. The policy objective of this instrument, as with the broader scheme under the Customs Act, is to support Australian manufacturing while maintaining competitive import pricing.
Scope and Application
The Customs Act 1901, specifically under Part XVA, authorises the Chief Executive Officer of Customs to make and revoke Tariff Concession Orders (TCOs). A TCO provides for a lower rate of customs duty on certain goods if they meet specified criteria, such as the absence of substitutable goods produced in Australia on the day the application for the TCO was lodged. Section 269SB of the Act allows a producer of substitutable goods to request the revocation of a TCO if they believe the concession should no longer apply. The CEO must then assess whether the request for revocation meets the conditions outlined in section 269SC, including verifying the producer’s claim and determining if a narrower TCO could be applicable. If satisfied, the CEO must revoke the existing TCO and issue a narrower one if appropriate. This process ensures the continued fairness and relevance of tariff concessions in line with Australia's trade and production activities. The revocation and replacement of TCOs, such as the case with TCO 0314952 being revoked and replaced by TCO 0614830, is communicated through a notice published in the Gazette, ensuring transparency and compliance with legislative requirements.
Key Provisions
The Tariff Concessions Revocation Instrument 95/2006 (F2006L03657) revokes Tariff Concession Order (TCO) 0314952 and replaces it with a narrower TCO 0614830, both of which pertain to kraft paperboard. The revocation and replacement are pursuant to the Customs Act 1901 (the Act). Section 269SC(1) of the Act mandates that the Chief Executive Officer of Customs (CEO) must determine whether a request for the revocation of a TCO is valid based on whether the applicant is a producer of substitutable goods in Australia and whether the CEO would have made the TCO under current circumstances. If the CEO is satisfied with these conditions but also believes that a narrower TCO could have been issued, the original TCO is revoked and a narrower TCO is established (subsection 269SC(4)). The CEO's decision is based on the application from Visy Industries Australia Pty Ltd.
The Act imposes specific obligations on the CEO. Upon receiving a revocation request, the CEO must promptly publish a notice in a Gazette, detailing the request and the specifics of the TCO in question (subsection 269SC(1A)). This ensures transparency and provides stakeholders with timely information about potential changes to tariff concessions. The revocation and replacement of the TCO are effective from the date the revocation request was lodged (subsection 269SC(6)). If a narrower TCO is issued in place of the revoked one, it takes effect from the date of the revocation of the original TCO (subsection 269SC(7)). These provisions ensure that any changes to tariff concessions are implemented without delay and that stakeholders are promptly informed of such changes.
Failure to comply with the provisions of the Customs Act 1901, including those related to tariff concessions, could result in legal consequences. However, the specific offences, penalties, or consequences for non-compliance with the Tariff Concessions Revocation Instrument 95/2006 are not detailed in the explanatory statement provided. Generally, breaches of the Customs Act can lead to civil or criminal penalties, depending on the nature and severity of the offence. Civil penalties can include fines, while criminal penalties can include imprisonment, reflecting the seriousness with which the law treats non-compliance. The exact penalties would need to be referred to in the relevant sections of the Customs Act 1901 or related legislation.